If you're looking to purchase a home in Boston, prepare to face steep prices. According to NBC, the median cost of Boston real estate is approaching $1 million, pricing out thousands of would-be buyers.
The good news? There are creative ways to get into the real estate market, and traditional listings aren't your only option. Real estate auctions are an often-overlooked source of great housing options throughout Boston.
What should buyers know about real estate auctions before they go? Read on for our complete guide to buying auctioned real estate with confidence.
What Kinds of Properties Go to Auction?
Will you be able to find what you're looking for from a real estate auction? Most commonly, you'll find the following types of properties available at auction:
- Foreclosure properties
- Properties with outstanding city taxes
- Luxury homes
- Vacant land
- Commercial buildings
Buyers are often surprised to discover the number of luxury properties that owners are selling at auction. The purpose is generally to connect only with serious buyers who can finalize the deal quickly. That said, you'll find properties at all price points when you start looking for auctioned listings.
How Can You Find Boston Real Estate Auctions?
There are several different real estate auction houses that operate in Boston. For example, Sotheby's is a company with a national presence that specializes in luxury properties.
If you're looking for lower-priced options, keep an eye out for Boston sheriff sales. Sheriff sales are auctions that sell foreclosure properties, which vary in price and condition.
What Is the Real Estate Auction Process?
Most real estate auctions will require you to register as a bidder before the auction begins, whether they're in person or online. The auctioneer will set a minimum bidding price, and bidders will go from there.
If you place the winning bid, make sure you're prepared to deposit money right away. The contract may require you to close the sale in as little as 30 days and limit your ability to back out without financial loss.
How Can You Prepare for Real Estate Auctions?
Before you go to a real estate auction, make sure you're fully prepared by:
- Researching the property
- Attending open houses or showings if possible
- Assessing your financing options
- Setting your own maximum bid
Many bidders will have the ability to pay in cash. If you need to take out a mortgage, seek pre-approval before you attend the auction. Make sure to disclose to your lender that you intend to buy an auctioned property, or you could run the risk of your lender backing out after you've made an offer.
Make the Most of Boston Real Estate with PMI Greater Boston
If you're looking to invest in Boston real estate, know that you're not limited to the traditional market. Real estate auctions offer great opportunities to buy properties that most buyers overlook.
Are you expanding your real estate portfolio to earn a rental income? PMI Greater Boston offers property management run by a licensed real estate agent, giving us the ability to support investors from purchase to rental. Contact us today for top-of-the-line property management services.
